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NY unemployment identity theft - received tax letter for $14k benefits I never got

I applied for NY unemployment in January 2025. Got an email saying my application was approved, but after 2 weeks still received nothing. Called NYSDOL and the representative had me log into my account, but I couldn't because it said my SSN was already associated with another account! She gave me the username linked to my SSN, and when I checked, everything was wrong - different address, phone number, everything. I tried to update the info but kept getting logged out. Called back, explained what happened, and they told me to report it as fraud. I did that and received an email saying they would investigate and I "don't need to contact them anymore." Great. Three days ago I received a letter from the tax department saying I was given $14,500 in unemployment benefits (which I NEVER received) and now I owe $1,450 in taxes! I still can't access my account because my SSN is supposedly linked to some other account. How do I fix this? This is clearly identity theft and I don't want to be on the hook for taxes on benefits I never got!

You're dealing with a serious case of unemployment fraud. This unfortunately happens too often. Here's what you need to do immediately: 1. File a police report for identity theft 2. Contact the NY Department of Labor fraud department again at 888-598-2077 (make sure you mention you received a tax document) 3. Contact the IRS Identity Protection Specialized Unit at 800-908-4490 4. File Form 14039 (Identity Theft Affidavit) with the IRS 5. Place a fraud alert with the credit bureaus The tax document you received is likely a 1099-G form. You need to dispute this with both NYS DOL and the IRS. Don't ignore this or it will cause problems with your tax filing.

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Thank you for the detailed steps! I'm so stressed about this. Do I need to pay the taxes while this is being investigated or can I hold off until it's resolved?

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Same thing happened to me last year!! It's a total nightmare. Took me almost 4 months to get it sorted out. Make sure you keep copies of EVERYTHING and write down the name of every person you talk to. The system is a mess.

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4 months?! I can't believe it takes that long. Did you end up having to pay any of the taxes or did they completely remove it from your record?

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pretty sure u need to go to the DOL office in person. they cant ignore you if ur standing right there lol. also call the tax dept directly too

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Going in person can help, but many DOL offices still require appointments. It's best to call first and document everything. And definitely contact the tax department - they have a specific process for disputing incorrect 1099-G forms.

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This is CRAZY! I had something similar happen but they only claimed $3,200 in my name. How can they tell you "don't contact us anymore" when someone STOLE YOUR IDENTITY?? This system is completely broken! Did they at least give you a case number or anything for the fraud report? I'm worried this will affect your credit score too - have you checked that recently?

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They gave me a reference number for the fraud report, but nothing else. I haven't checked my credit score but that's a good point, I should do that right away. This whole situation is giving me so much anxiety!

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I work with unemployment cases, and unfortunately identity theft with UI benefits has become increasingly common. Here's what you need to know: 1. The NYS Department of Labor has a specific process for handling incorrect 1099-Gs. You need to request a corrected 1099-G by filling out their online form or calling their dedicated line at 1-888-209-8124. 2. You should also file Form 14039 (Identity Theft Affidavit) with the IRS immediately. 3. Document everything - every call, email, and letter. This documentation will be crucial. 4. Contact all three credit bureaus to place a fraud alert. The most challenging part will be reaching someone at NYSDOL who can help resolve this. Their phone lines are constantly overwhelmed.

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This is good advice but getting through to that 888 number is IMPOSSIBLE. I tried for 2 weeks straight and never got through. Waste of time.

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I had an issue reaching NYSDOL last month (different problem but still needed to talk to someone urgently). After days of failed attempts, I used a service called Claimyr (claimyr.com) that got me connected to an agent in about 30 minutes instead of spending days redialing. They have a video showing how it works: https://youtu.be/Rdqa1gKtxuE For something as serious as identity theft, you really need to talk to a real person ASAP. Might be worth considering since this involves tax implications and potential credit damage.

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Thank you for this suggestion! I've been calling constantly and getting nowhere. I'll check out that service - at this point I'm desperate to talk to an actual person who can help.

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Omg this is SO scary! I'm about to apply for unemployment and now I'm terrified this could happen to me. Do you think someone used your SSN because of a data breach or something? Have you been able to fix your credit score?? I would be absolutely FREAKING OUT if this happened to me! 😱

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This type of fraud has increased but it doesn't mean it will happen to you. To protect yourself, create your NY.gov ID account before you need it, use strong unique passwords, enable two-factor authentication if available, and monitor your email for any NYSDOL communications you didn't initiate. If you receive any unexpected correspondence about unemployment, investigate immediately.

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Just to provide some additional information: When you do reach NYSDOL, request to speak with someone in their fraud department specifically. Mention that you've received a tax document for benefits you never claimed or received. They may need to transfer you to a specialized unit. Also, be sure to check if you can access your tax transcript through the IRS website, as this will show what has been reported under your SSN. This can be valuable documentation to prove the discrepancy. Don't file your taxes with the incorrect information - this can complicate matters further. If tax filing deadlines are approaching, you may need to file for an extension while this gets resolved.

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Thank you for this advice. I'm glad you mentioned the tax filing part - I was worried about how to handle that. I'll definitely request a fraud department specialist when I finally get through.

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my cousin had the exact same problem and he went to his local state rep's office and they helped him cut through all the red tape. might be worth trying

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THIS is smart advice! State representatives can often help when state agencies are giving you the runaround. They have direct contacts and can expedite cases. I've seen this work for several people!

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Update: I managed to reach someone at NYSDOL using the Claimyr service that was recommended here. The agent confirmed this is definitely identity theft and has escalated my case to their fraud department. They're sending me paperwork to formally dispute the 1099-G and said I should also file a police report ASAP for documentation. They're also helping me establish a new account with additional identity verification measures. Thank you all for your help and suggestions! I'll post another update when this is resolved in case it helps someone else.

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That's great progress! Make sure to complete all the paperwork they send you as quickly as possible. Getting this documented promptly with both NYSDOL and law enforcement will help establish your case. Keep detailed notes of everyone you speak with (names, ID numbers, dates) and follow up if you don't hear anything within their stated timeframe.

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